What is insider trading, and why is it illegal?

What is insider trading, and why is it illegal?

Insider trading occurs when someone buys or sells stocks based on non-public, confidential information about a company.

This gives them an unfair advantage over other investors.

It is illegal because it disrupts market fairness and transparency, allowing a few individuals to profit unfairly while others make decisions with publicly available information.

SEBI strictly monitors and penalizes insider trading to maintain investor trust and ensure a level playing field in the stock market.


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